Bharti Climbs Most in Three Years After Quarterly Results

Bharti Airtel Ltd. (BHARTI), India’s largest
mobile-phone operator, jumped the most in three years in Mumbai
trading after user revenue increased in the first quarter.

Bharti shares rose 7.3 percent, the most since July 2010,
to 344.50 rupees at the close in Mumbai trading. The stock was
the best performer on the 30-company benchmark S&P BSE Sensex
Index, which was little changed.

Average revenue per user from mobile services in India, its
biggest market, rose 8.7 percent to 200 rupees ($3.3) a month
during the quarter, while total data traffic in the nation and
operating free cash flow both doubled, Bharti said today. The
results “demonstrate the potential for growth” and reflect
stability in operations, Billionaire Chairman Sunil Mittal said
in a statement.

“Bharti’s results looked very strong in India” because of
the higher user revenue and usage, said Ankur Rudra, a Mumbai-based analyst with Ambit Capital Pvt, who recommends buying the
stock. “Bharti will continue to benefit from the increase and
growth in data consumption.”

Net income fell 9.6 percent to 6.89 billion rupees ($114
million) in the quarter, the smallest drop since the three
months ended March 2010, data compiled by Bloomberg show. The
earnings missed the 7.5 billion-rupee median of 33 analyst
estimates compiled by Bloomberg.

Net sales rose to 202.6 billion rupees in the three months
ended June from 185.6 billion rupees, lagging behind the 212.7
billion-rupee median of 26 analyst estimates. Voice revenue per
minute in India rose 0.7 percent during the period, according to
the statement.

Finance costs, including currency exchange fluctuations,
increased to 11.7 billion rupees in the quarter, from 7.4
billion rupees in the year-earlier period, Bharti said. The
Indian rupee declined 6 percent against the dollar in the 12
months through June, according to data compiled by Bloomberg,
raising costs and debt denominated in foreign currencies.

The company’s consolidated net debt declined by $908
million to $9.78 billion at the end of June.